August 6th, 2019 Mortgage Industry Update

The Bank of Canada announced on July 10th that it’s overnight lending rate will remain at 1.75%. The prime rate remains 3.95%. The common prediction currently stands that the Bank of Canada will likely keep rates consistent for the remainder of 2019, with the small possibility of a rate decrease.

Additionally this week:– Bank of Canada: Outstanding balance of mortgage debt was 3.7% higher year-over-year in June, up to $1.57 trillion. Last month saw the largest annual increase since August, and at the same time the poorest June since 2001. It was also the second weakest growth rate since 1990.

– Rider Levett Bucknall: There are still more cranes in Toronto than in the three biggest US cities combined. Downtown core topped all North American markets by a wide margin with 120 cranes. In fact, of the 246 cranes across the GTA, 126 of them are outside downtown Toronto.

– Leger poll commissioned by FP Canada: 24% of Canadians with adult children helped their offspring become first-time home buyers. Nearly half (48%) indicated that they plan on helping their children buy their houses once they come of age.

– BILD: 932 new single-family homes sold in June in GTA, up 127% from 2018, 30% below 10-year average. 14% rise from 2018 for condos, with 2,420 units sold; only 5% below 10-year average. Prices for newly built condos up 3.9% to $804,591. Single-family homes down 3% to $1,098,948.

– Greater Toronto Realtors reported 7,038 sales of condo apartments through TREB’s MLS in Q2, up 3.2% compared to a year earlier. New listings for the sector were down 3.5% year-over-year to 11,110, and the average price gained 5.1% to $589,887.

– The Bank of Canada has lowered the mortgage stress test rate for the first time in three years. The central bank lowered the five-year benchmark qualifying rate to 5.19% from 5.34% – the first time the stress test rate has dropped since September 2016.

Stay tuned for the next update!

For any questions and concerns please do not hesitate to call Harpreet Singh The Mortgage King at (416) 795-1919.